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Consumer & Business Buyer Behavior (continued)

Consumer & Business Buyer Behavior (continued). Chapter 6. Stages in the New Product Adoption Process. Adoption process: the mental process through which an individual passes from first hearing about an innovation to final adoption

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Consumer & Business Buyer Behavior (continued)

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  1. Consumer & BusinessBuyer Behavior(continued) Chapter 6

  2. Stages in the New Product Adoption Process • Adoption process: • the mental process through which an individual passes from first hearing about an innovation to final adoption • Consists of 5 Stages (These are exactly as their names imply): • Awareness • Interest • Evaluation • Trial • Adoption

  3. Influences on the Rate of Adoption • Relative advantage • How much better than existing alternatives? • Compatibility • Fit current values and experiences? • Complexity • Ease of understanding? • Divisibility • Can it be tried on a limited basis? • Communicability • Can the innovation be observed and communicated?

  4. 34% Early majority 34% Late majority 13.5% Early adopters 2.5% Innovators 16% Laggards Time of adoption of innovations Source: reprinted with permission of the Free Press, a Division of Simon & Schuster, from Diffusion of Innovations, Fourth Edition, by E.M. Rugers, 1983. Rate of Adoption Over Time

  5. Distinguishing Characteristics of Business Markets • Market structure and derived demand • Fewer but larger buyers, concentrated, demand based on purchases by customers. • Nature of the buying unit • Multiple decision-makers, rational. • Types of decisions and decision process • More complex, formalized, dependent (close buyer-seller relationships).

  6. Business Buying Influences • Environmental –primary demand, economics, supply conditions, laws, etc. • Organizational–Objectives, policies, procedures, organizational structure and systems. • Interpersonal–Authority, status, empathy and persuasiveness. • Individual –Age, education, job position, personality and risk attitudes.

  7. New task Modified rebuy Straight rebuy Problem recognition Yes Maybe No General need description Yes Maybe No Yes Yes Yes Product specification Yes Maybe No Supplier search Yes Maybe No Proposal solicitation Yes Maybe No Supplier selection Order routine specification Yes Maybe No Performance review Yes Yes Yes Business Buying Process

  8. Straight Rebuy Modified Rebuy New Task Low Medium High Minimal Moderate Maximum Newness of Problem or Need Minimal Limited Extensive Information Requirements None Limited Extensive Information Search Very Small Moderate Large Consideration of New Alternatives Low Moderate High Multiple Buying Influence Limited prob. solving Financial Risks Routine response Extended prob. solving Characteristics of theThree Types of Buying Decisions

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